[gvsmitty19]

As we get super close to crunch time, are you planning on buying or leasing and why?

I wonder what the lease prices will run. Like $300ish/mo for a standard model?

 

[providenceautos]

Based on my experiences with leasing, I doubt it would be that low - but possibly if there is a promo rate available from Chrysler. JGC's lease a lot higher, of course they are a more expensive vehicle. With all of the excitement around the new Cherokee, I bet we don't see any lease promos right away.

 

[Kenmac]

Always purchase unless your company is paying for the lease.
You never have anything to show for the money when you lease.
There are so many pros and cons...
I'd rather take a higher payment per month and have it be mine in the end.
Just my 2 cents.

 

[Zhe Wiz]

Always purchase unless your company is paying for the lease.
You never have anything to show for the money when you lease.
There are so many pros and cons...
I'd rather take a higher payment per month and have it be mine in the end.
Just my 2 cents.

Actually, it depends on how often you buy a new car. "Always" simply doesn't apply. The best move financially is to buy used and keep and fix it as long as possible. Next best is buy new and keep and fix it as long as possible. BUT if you're the type who switches to a new car every 3-5 years, you are TYPICALLY (depends on rates, residuals, miles, etc) better off leasing than buying. Leasing gets a bad rap, but it has its place.

Zhe Wiz

 

[Kenmac]

Actually, it depends on how often you buy a new car. "Always" simply doesn't apply. The best move financially is to buy used and keep and fix it as long as possible. Next best is buy new and keep and fix it as long as possible. BUT if you're the type who switches to a new car every 3-5 years, you are TYPICALLY (depends on rates, residuals, miles, etc) better off leasing than buying. Leasing gets a bad rap, but it has its place.

Zhe Wiz

Agreed!
"Always" wasn't the bet choice of words. :thumbsup:

 

[CNY_WK2]

Actually, it depends on how often you buy a new car. "Always" simply doesn't apply. The best move financially is to buy used and keep and fix it as long as possible. Next best is buy new and keep and fix it as long as possible. BUT if you're the type who switches to a new car every 3-5 years, you are TYPICALLY (depends on rates, residuals, miles, etc) better off leasing than buying. Leasing gets a bad rap, but it has its place.

Zhe Wiz

This is only my opinion:

To expand on this(I love new things), we got a 2012 Explorer on lease in 2011(first year of the new style) to assess whether we liked it or not since the need for a larger vehicle came about. This year, after the 2 year lease ran up, we ordered a 2013 Explorer, different model, color, etc.

It gave us a relative simple way to test the vehicle and not be stuck with it for long if it wasn't to our liking.

That said, I am going to lease my JGC and can almost bet I will buy it out after the lease term....however since the 3.0 diesel / 8 spd / etc is all new tech, I can always get the next model if things go south.

 

[Zhe Wiz]

To expand on this(I love new things), we got a 2012 Explorer on lease in 2011(first year of the new style) to assess whether we liked it or not since the need for a larger vehicle came about. This year, after the 2 year lease ran up, we ordered a 2013 Explorer, different model, color, etc.

It gave us a relative simple way to test the vehicle and not be stuck with it for long if it wasn't to our liking.

That said, I am going to lease my JGC and can almost bet I will buy it out after the lease term....however since the 3.0 diesel / 8 spd / etc is all new tech, I can always get the next model if things go south.

Good point. I'm actually "the kind" that likes a new car every three years or so, BUT I had planned on buying my next vehicle and keeping it for a while. My two top choices are the new Cherokee and Grand Cherokee, but the "cutting edge" factor scares me too. Scares me enough that I, like you, may lease one instead. I'm also leaning toward the diesel if I go GC, but don't have to make a choice until my Subie lease expires in April.

Zhe Wiz

 

[jeep5.7]

just so you know I got a 2014 with ally lease and my payments are 465.00 with no money outta pocket

 

[vnbWK2]

just so you know I got a 2014 with ally lease and my payments are 465.00 with no money outta pocket

Which model (Laredo, Limited)? What are your lease terms (36 months, 36k miles)?

 

[gvsmitty19]

I'm leaning towards leasing one. This would be my first lease since I generally believe that buying used is by far the smartest thing to do.

First off, this is a first-gen model, and those are notorious for having problems/recalls and not holding their residual value as well as later year models.

Second, I like the way the entire auto industry is heading. Three years from now, we're going to have some very exciting technology and ridiculously high mpg, and I will probably want to be on board.

Jeep seems to have a lot of things in the works in the coming years, and I'm excited about mid size trucks coming out in 2014/2015 that will get 30+ mpg. The 2015 Chevy Colorado, for instance, looks very promising so far.

 

[gvsmitty19]

UPDATE:

Okay, I might have changed my mind after talking to my dealer.

With employee pricing, a 2014 Cherokee Latitude with no extras would cost approximately $279/mo with $3,000 down (10k mileage).

Seems like a huge rip off to me compared to similar priced Buick and GMC vehicles offering $199/mo with less money down.

Any thoughts?

 

[macfan]

UPDATE:

Okay, I might have changed my mind after talking to my dealer.

With employee pricing, a 2014 Cherokee Latitude with no extras would cost approximately $279/mo with $3,000 down (10k mileage).

Seems like a huge rip off to me compared to similar priced Buick and GMC vehicles offering $199/mo with less money down.

Any thoughts?

The reason the Cherokee lease is more is that the Cherokee is worth more at the end of the lease then GM vehicles. Jeeps have high reseal value. GM (junk :lol does not. I am going to lease (my mother has Chrysler discount) my Limited if it ever gets here for a few reasons. One, being a new vehicle it has no track record so I am not sure what kind of problems I might have with it. Secondly, I am currently having a problem with my present car due to lack of use and rubber rot. Thirdly, I don't want to own a car beyond its warranty.

TIP: Chrysler dealers can sell a vehicle below invoice using the Chrysler discount if they choose. The lowest a GM dealer can go using a discount is invoice. Push your Jeep dealer to go below invoice as he won't voluntarily tell you that he can do that. Going below invoice will bring the lease cost down some.

TIP 2: The lease price your dealer is quoting you is from Chrysler Capital. He also has US Bank available to him and rumor has it he may also soon have Ally/Chrysler Financial available to him as well.

 

[loveracing1988]

The reason the Cherokee lease is more is that the Cherokee is worth more at the end of the lease then GM vehicles. Jeeps have high reseal value. GM (junk :lol does not. I am going to lease (my mother has Chrysler discount) my Limited if it ever gets here for a few reasons. One, being a new vehicle it has no track record so I am not sure what kind of problems I might have with it. Secondly, I am currently having a problem with my present car due to lack of use and rubber rot. Thirdly, I don't want to own a car beyond its warranty.

TIP: Chrysler dealers can sell a vehicle below invoice using the Chrysler discount if they choose. The lowest a GM dealer can go using a discount is invoice. Push your Jeep dealer to go below invoice as he won't voluntarily tell you that he can do that. Going below invoice will bring the lease cost down some.

TIP 2: The lease price your dealer is quoting you is from Chrysler Capital. He also has US Bank available to him and rumor has it he may also soon have Ally/Chrysler Financial available to him as well.

If the residual value is higher at the end of the lease the monthly payment will be lower, because you are paying for less of the depreciation. The reason the jeep leases are higher is they don't have to offer a cheap lease. People who want a Jeep will buy one no matter what.

 

[JimmyLuv]

I recommend buying a software product called TValue. It's easy to use and let's you compute all kinds of financial questions from home mortgage to a car lease. I have worked in the automotive dealership industry for 20 years and have a college degree in finance and this is the best tool you could ever find

 

[providenceautos]

UPDATE:

Okay, I might have changed my mind after talking to my dealer.

With employee pricing, a 2014 Cherokee Latitude with no extras would cost approximately $279/mo with $3,000 down (10k mileage).

Seems like a huge rip off to me compared to similar priced Buick and GMC vehicles offering $199/mo with less money down.

Any thoughts?

"RIP OFF" = overpaying for what you get.

Questions to consider:
- Which vehicle do I like best?
- If it's the Cherokee, do I see enough extra value to justify a higher monthly payment? If so - what am I complaining about? If not - consider saving additional downpayment money to lower my monthly payment.
- If it's not the Cherokee, what am I complaining about? Go get the one I like best.

 

[providenceautos]

TIP: Chrysler dealers can sell a vehicle below invoice using the Chrysler discount if they choose. The lowest a GM dealer can go using a discount is invoice. Push your Jeep dealer to go below invoice as he won't voluntarily tell you that he can do that. Going below invoice will bring the lease cost down some.

TIP 2: The lease price your dealer is quoting you is from Chrysler Capital. He also has US Bank available to him and rumor has it he may also soon have Ally/Chrysler Financial available to him as well.

TIP 1 - why should the dealer sell it to you for less than invoice? Every deal is different, but on a new highly-anticipated model it can be hard to get a less-than-invoice price without some other factor like supplier pricing or because there is a dealer in competition for the business. That said, invoice price is usually fair as it give you a great deal on the car and allows the needed profit for the dealer. No dealership gets rich by selling cars at invoice (trust me on this, I struggle to pay the basic family bills every month and live within my means).

TIP 2 - US Bank is better to deal with on a lease because acquisition fee is lower and customers can more easily get out of the lease contract if needed. Chrysler leases usually have the lower payment but are less flexible if you need to get out early.

 

[Tarponbeach]

Couple of things to consider regarding leasing...Most States mandate that the lease comes with Gap insurance. They can't charge for Gap insurance, so they usually bury it in the "acquisition fee". If the vehicle gets stolen or totaled, you simply walk away, and the Gap insurance pays the leasing company the difference between the depreciated value of the vehicle, and what is owed to the leasing company. This is why it usually does not make any sense to put money down on a lease. If you do put money down, and the vehicle is a total loss, you lose your down payment.

The three questions to ask before leasing are (1) What is the residual value of the vehicle at lease end? As an example, a $50,000 vehicle that has a 50% residual at 36 months, means that you are paying $25,000 over the term of the lease, plus interest charges. This is why it may be cheaper to lease a BMW than a Mitsubishi, as the BMW has a higher residual value.

(2) What is the Money Factor? Money Factor is actually the interest rate. It is expressed in decimal, ie: .00234 to confuse the buyer. Multiply the Money Factor times 2400 to find out what the actual interest rate is: ie: .00234 x 2,400 = 5.616% interest rate. Captive finance companies like Chrysler Capital, BMW Finance, etc, usually have better money factors and residuals than independent leasing companies.

(3) Ask what the Capital Cost is. This is the actual selling price from the dealer to the leasing company. People who lease are many times only concerned with what the "monthly payment" is. Never tell the salesman what you want to pay a month, as this is probably what you will end up paying. In this event, you may end up paying M.S.R.P. for the vehicle.

On a purchase, any down payment that you make is lost in the event of a total loss. If you don't put any money down on a purchase, and there is a total loss, you may end up paying for a car you no longer have..assuming that the depreciated value of the vehicle at the time of loss is less than what is owed to the bank. Gap insurance is available for purchase on a buy, but few people opt to purchase it.

 

[Husker2233]

Just leased my Latitude 3.2 yesterday, with an employee lease. With zero down and my employer paying off 7 months of my previous lease and early termination fee (2.5k) and i am at about 350 which i think is fair for the situation.

 

[amc2002]

Actually, it depends on how often you buy a new car. "Always" simply doesn't apply. The best move financially is to buy used and keep and fix it as long as possible. Next best is buy new and keep and fix it as long as possible. BUT if you're the type who switches to a new car every 3-5 years, you are TYPICALLY (depends on rates, residuals, miles, etc) better off leasing than buying. Leasing gets a bad rap, but it has its place.

Zhe Wiz

With a Jeep vehicle, don't you always want to be under warranty? So between extended warranty pricing for older vehicles, it often works out to your advantage to just rent them. Cheaper payment, always under warranty, you just pay for gas and tires if necessary. Leasing definitely has its place.